Definition
Money borrowed to pay for education expenses, which you repay with interest after completing your studies.
What to consider
- Keep track of all your loans and their interest rates.
- Plan your repayment strategy early to avoid long-term stress.
- Explore consolidation or refinancing if it saves money.
Real world scenarios
- While completing her degree, Farrah keeps track of student loan balances to avoid borrowing more than necessary.
- After graduating, Malik enters the grace period for his loans, focusing on finding a job before regular repayments begin.
- Julia refinances her high-interest student loans after building a good credit score, drastically cutting her monthly payment.
Related terms
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